Birmingham's divisive ‘rat tax’ charge set to rise again

After declaring itself effectively bankrupt in 2023, the Labour-run city council introduced charges for ‘rat in garden and rat in house treatments’ – a service which was previously free.

The charge, dubbed a ‘rat tax’ by critics, was hugely divisive and prompted councillor Sam Forsyth to dramatically quit the Labour Party last year.

The charge rose from £24 to £26.40 in 2025 despite calls to axe it amid fears over the impact of the ongoing bins strike.

The council’s rat treatments are temporarily free of charge in a bid to “prioritise public health” due to the ongoing industrial action by bin workers.

But the authority is now planning to increase the charge once again, so residents would face forking out £27.60 – a rise of 4.55 per cent – when payments resume.

The hike is part of a fresh wave of price rises for hundreds of council services being proposed, impacting leisure and sport, bereavement services and car park charges.

“The council has, like citizens and businesses, seen costs hit by high levels of inflation due to the impact of the cost-of-living crisis,” the council wrote in a recent document.

“As part of the ongoing efforts to find savings to ensure the council is in a sustainable financial position, the decision was made to seek an additional 4.99 per cent increase to fees and charges where possible.”

The bins strike recently hit the grim one-year milestone and attracted unwanted headlines about ‘cat-sized rats’ during its height last year.

Justifying the rat charge during the first month of the industrial action, Sajeela Naseer, director of regulation and enforcement at the council, told a meeting: “We followed a lead that has been shown by other local authorities across the country.

“We accept there are citizens who will no longer have that free service but we have done our best to mitigate against the impacts.”

“People can also purchase and treat themselves, as supplies are readily available in shops and online,” a council spokesperson previously added.

The proposed rise comes as the authority reveals details of its planned budget for the next financial year, with council leader John Cotton saying it is no longer ‘bankrupt’.

After it became engulfed by a financial crisis, the city council approved unprecedented cuts to local services, hiked council tax and disposed of more than £250 million worth of ‘assets’.

But despite an enormous £300 million budget gap reportedly being closed due to such drastic measures, Brummies face a new council tax rise of around 5 per cent and an increase in fees and charges for an array of council services.

Birmingham-specific issues contributed to the council’s financial turmoil, such as the equal pay and Oracle debacles, while Labour councillors have pointed the finger at funding cuts during the previous Conservative government.

The proposed budget for 2026/27 will go to the council’s cabinet on Tuesday (February 10) and then a meeting of the full council for approval.

The bins strike dispute between the council and Unite the union was initially triggered by the loss of the Waste Recycling and Collection Officer role.

The past 12 months or so have seen striking workers claim they face a pay cut of £8,000.

The council has disputed the figure and repeatedly insisted that a fair offer had been made before negotiations came to an end last summer.